PAC probes Smart Infraco over $6m debt and dubious GH¢6.7m payment

The Public Accounts Committee (PAC) of Parliament has raised serious concerns over Smart Infraco Limited, a private firm contracted to commercialise Ghana’s excess e-government infrastructure capacity, which owes the state $6 million but was simultaneously paid GH¢6.7 million by the Ministry of Communication, Digital Technology and Innovations without proper documentation.

The issue emerged on Tuesday when officials from the ministry and its implementing agency, the National Information Technology Agency (NITA), appeared before PAC to answer queries from the Auditor-General’s 2024 report.

Debt vs. Payments

According to the report, Smart Infraco was required to pay $6 million in advances between 2020 and 2024 — $2 million in 2020 and $1 million annually from 2021 to 2024. However, not a single payment has been made.

In a separate irregularity, the Ministry transferred GH¢6.7 million to the same company in December 2023 for a connectivity platform project, but failed to provide certificates of work done, invoices, or any proof of service delivery.

PAC members expressed outrage at what appeared to be contradictory dealings with the company.

“So in one breath, this company owes you. In another breath, you owe this company. What prevents you from even setting off? But then you are in turn paying without even documentation to this effect,” said Kumawu MP, Ernest Yaw Anim.

NITA’s Response

NITA’s Director-General, Mark-Oliver Kevor, admitted that none of the $6 million had been recovered despite repeated letters and meetings with Smart Infraco. He revealed that the dispute had been referred to the Attorney-General for legal advice.

“Madam Chair, we have engaged them. We have had a joint management meeting between NITA and Smart Infraco, trying to address this outstanding matter. But we are at a dead end and that is the reason our mother ministry has taken over,” he explained.

Deputy Minister Mohammed Adams Sukparu confirmed that the ministry remained bound by its contract with Smart Infraco, noting that months of fruitless engagement forced the referral to the Attorney-General in February this year.

PAC has since directed the ministry’s chief director, head of finance, and other officers to return with full documentation. The committee also hinted it may summon the Attorney-General and Smart Infraco itself.

Cybersecurity Authority Query

The Cybersecurity Authority (CSA), which also appeared before PAC, faced scrutiny over another Auditor-General finding. The report revealed that two former CSA staff continued to draw salaries after resigning, in breach of Regulation 92 of the Public Financial Management Regulations (2019), which mandates immediate stoppage of salary payments. In total, GH¢31,263 was wrongly paid.

Acting Director-General of CSA, Divine Selasi Agbeti, attributed the lapse to payroll processes managed by the Controller and Accountant-General’s Department. He described the matter as a “grey area,” noting conflicting records between the Controller’s office and the Auditor-General, with one of the affected staff denying ever receiving the money.

Mr. Agbeti assured PAC that recovery efforts were underway. He also flagged CSA’s broader challenge of retaining cybersecurity professionals, blaming low public sector pay compared to lucrative private sector and international offers, and appealed for specialised incentive policies to curb attrition.